Question
Which of the following will have a greater effect on aggregate demand: a $1 billion tax cut or a $1 billion increase in government purchases?
Which of the following will have a greater effect on aggregate demand: a $1 billion tax cut or a $1 billion increase in government purchases?
A.A $1 billion tax cut will have a greater effect on aggregate demand.
B.A $1 billion increase in government purchases will have a greater effect on aggregate demand.
C.They will have the same effect.
Clearly explain your answer to part 1 of this question.
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Operations Management Processes And Supply Chains
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
13th Global Edition
129240986X, 978-1292409863
